scholarly journals Identifying the Factors Affecting Financial Condition of Malaysia

2021 ◽  
Vol 22 (1) ◽  
pp. 403-421
Author(s):  
Yee-Ling Pang ◽  
Hock-Ann Lee
Keyword(s):  
Foreign Exchange Market ◽  
Statistical Significance ◽  
Balance Sheet ◽  
Banking System ◽  
Principal Component ◽  
Well Being ◽  
Factors Affecting ◽  
Financial Condition ◽  
Long Run ◽  
The Us

This research focuses on the domestic and external determinants of Malaysia’s financial condition, ranging from January 2003 and March 2019. To represent the domestic determinants, a total amount of twelve financial indicators are adopted to compute three indices using the Principal Component Approach (PCA). Three of the indices embody three respective financial segments, particularly the banking system, the foreign exchange market, and the capital market within the Malaysian financial system. These three segments offer a glimpse of the Malaysian financial condition. For the external determinant, the US total assets of all Federal Reserve Banks are adopted as the proxy for the size of the US balance sheet. This research intends to evaluate the validity of the long-run association and its corresponding level of effect between the computed indices and the US balance sheet size via the conduct of the ARDL bounds test approach. The research findings have verified the validity of the long-run association between the Malaysian financial condition and the US balance sheet size. There is a substantial role played by the US balance sheet size in affecting the well-being of Malaysian financial condition, given the statistical significance is shown in the association between the US balance sheet size and the financial-segment-based indices, whereby its strongest influence is found on the banking system condition.

scholarly journals Analysis of Internal and External Determinant Variables towards Profitability of Islamic Banking in Indonesia (2014-2020)

2021 ◽  
Vol 4 (1) ◽  
pp. 18-34
Author(s):  
Febri Ramadhani ◽  
Muhammad Rizkan
Keyword(s):  
Negative Relationship ◽  
Banking System ◽  
Islamic Banking ◽  
Correction Model ◽  
Factors Affecting ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Relationship Of

Indonesia is a country that adheres to a dual banking system, namely conventional and Islamic Banking. The growth rate of Islamic banking in the last three years is higher than conventional banking. However, in total assets, Islamic banking is still far behind conventional banking. Therefore, it is necessary to study further the performance of Islamic banking reflected in its profitability. So, it becomes an alternative input in determining Islamic banking policies. This study aims to know the factors affecting the profitability (ROA) of Islamic Banking in Indonesia. The data used are the 2014-2020 monthly data in the amount of 79 data. The method used in this study is a Vector Error Correction Model (VECM) to determine the effect of long-run and short-run relationships. The results of the study showed that the long-run relationship of the NPF variable affected and was significant positive toward ROA, CAR affected and was significant negative toward ROA, while the inflation variable had a negative relationship and not significant toward ROA. The results of the short-run relationships showed that the NPF and CAR variables positively affected ROA, while the inflation variable did not significantly affect the ROA.

scholarly journals Impact of Priority Sector Lending on Financial Profitability: Segment Wise Panel Data Analysis of Indian Banks

2021 ◽  
Vol 20 (1) ◽  
pp. 19-37
Author(s):  
Rajesh Desai ◽  
Keyword(s):  
Service Sector ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Banking System ◽  
Well Being ◽  
Least Square ◽  
Factors Affecting ◽  
Personal Credit ◽  
Indian Banks ◽  
Financial Profitability

A sustainable and financially stable banking system is a prerequisite to achieve comprehensive growth as well as economic and social well-being of residents of any country. This research focused on analyzing profitability of Indian banks and how it is affected by lending in the priority sector. Priority sector lending (PSL) mainly includes deployment of credit to weaker and neglected segments of an economy. The study adopted a distinctive measure to represent total PSL by classifying it into four sub-segments i.e., agriculture, industrial, service, and personal credit. Applying panel least square regression with fixed and random effects model, the study concluded that agricultural lending has a significant negative impact on bank profitability whereas the service sector lending adds positive value towards financial profitability of banks. Industrial and personal credit were found to be insignificant factors affecting profitability. The study will be beneficial to banking professionals and policy makers to determine sensitive and risky sectors of lending and develop appropriate approaches to deal with them.

scholarly journals BALANCE SHEET BUDGETTING AT AGRICULTURAL ENTERPRISES

2021 ◽  
Vol 4 (39) ◽  
pp. 121-129
Author(s):  
O. Fomina ◽  
S. Semenova ◽  
O. Moshkovska ◽  
T. Lositska
Keyword(s):  
Economic Development ◽  
Financial Stability ◽  
Balance Sheet ◽  
Jel Classification ◽  
Balance Budget ◽  
Financial Condition ◽  
Long Run ◽  
Level Of Economic Development ◽  
Effective Decision Making ◽  
Key Indicators

Abstract. The aim of the article is to study the importance of balance budgeting for agribusiness enterprises and to develop a sample balance budget that meets the needs and characteristics of their activities, reflects the key indicators of financial condition to achieve the target level of economic development. Approaches to determining the essence of the budget and budgeting are generalized, the main features of budget classification are systematized and the place and importance of the balance budget are characterized. The peculiarities of drawing up balance budgets for agribusiness enterprises, which consist in the method of initial recognition of agricultural products, assessment of current and long-term biological assets, reflection in the accounting of land plots, biological transformations, are analyzed. The method of determining budget indicators, the procedure for their coordination and relationship with other types of budgets are described. The proposed balance budget is substantiated, which is supplemented by analytical parameters to assess the financial condition of the enterprise and support effective decision-making. The balance sheet usually contains standard items of financial statements by month for the year, so an important addition is the presentation of deviations for all indicators for the year and average annual values, which will provide more smooth estimates. The scientific novelty of the study is to formalize the process of balance budgeting and balance sheet development for agribusiness enterprises, which takes into account the peculiarities of their activities and contains analytical indicators that help model liquidity, solvency and financial stability and achieve them in the long run. The results of the study allow to organize budgeting more effectively, facilitate the process of developing balance budgets and present them in a supplemented form to manage the financial condition of agribusiness enterprises, increase their book value and economic development. Keywords: budget, balance budgeting, agribusiness enterprise. JEL Classification М49, М21, Q19 Formulas: 0; fig.: 0; tabl.: 1; bibl.: 22.

scholarly journals Budget, motives and strategies for financial independence of undergraduates

2020 ◽  
Vol 32 (4) ◽  
pp. 94-107
Author(s):  
Anna V. Diachkova ◽  
◽  
Elena S. Avramenko ◽  
Mavzuna Kh. Melikova ◽  
◽  
...  
Keyword(s):  
Academic Performance ◽  
Financial Support ◽  
Practical Interest ◽  
Well Being ◽  
Soft Budget Constraint ◽  
Tuition Fees ◽  
Financial Independence ◽  
Factors Affecting ◽  
Educational Trajectories ◽  
Financial Condition

Introduction. The problems of scientific analysis, where the subject of study is the financial independence of undergraduates, mainly focuses on two directories: the study of the academic performance of undergraduate and the factors affecting it; financial condition of undergraduate depending on tuition fees. In modern studies, the issues of financial independence of students, their budget are not given due attention. The employment of students is often seen as one of the factors that negatively affect their academic performance, or in the context of forced work caused by high tuition fees. In today's pandemic realities, the aspect of the financial independence of students is actualized, while the problem of students' labor activity during training is of scientific and practical interest as a forced measure to maintain their well-being in order to gain financial independence. Materials and methods. The survey was attended by: 2-4-year students of the Bachelor's degree program "Applied Economics and Finance" (38.03.01 Economics) of the Institute of Economics and Management of Ural Federal University was carried out. The total number of students in 2-4 courses on the program is 284. Results and discussion. As a result of the study, the key motives for obtaining financial independence have been identified, which boil down either to the forced need to find finances, or to the desire to obtain financial independence and the formation of labor and financial competencies; formulated the basic financial strategies of students in relation to budget planning, budget optimization - passive as an orientation towards transfers from parents and the state, active as a search for grant support or going to work; it was found that the problem of choosing between work and study as an additional criterion included opportunity costs, measured as deterioration in academic performance; it was found that significant financial support from parents (family) and its increase with an increase in student spending forms a "soft budget constraint" for a student, reducing the motivation to gain financial independence. It was founded that more than 20% of 2-4-year students have part-time gob, while 2/3 of the working students do not “sacrifice” their studies for work. This is due to the fact that the motivation for choosing a job is voluntary. The survey data allowed to conclude that students are focused both on the improving of labor and financial competencies. It was revealed that the main source of income for their budget is transfers from parents (more than 90%) but own earns are less than 6% of the student budget. It should be noted that there was a large range in the students’ income: from 2,500 to 36,000 rubles. This may be due to both the income of the family in which the student lives and the model of financial support of the parents: they admit the independence of students according to their budget or the autonomy of their student children is practically absent. Conclusion. The results of this study are aimed at comprehending the educational, scientific, labor activity of a student, taking into account the motives for obtaining financial independence, which can be taken into account in the design of individual educational trajectories of students, the development of grant projects and offers of internship, educational loans, which together ensure the strengthening of the financial independence of students.

scholarly journals Toward a Survey-Based Assessment of Wind Turbine Noise: The Impacts on Wellbeing of Local Residents

Energies ◽  
2020 ◽  
Vol 13 (21) ◽  
pp. 5845
Author(s):  
Lida Liao ◽  
Yuliang Ling ◽  
Bin Huang ◽  
Xu Zhou ◽  
Hongbo Luo ◽  
...  
Keyword(s):  
Energy Harvesting ◽  
Wind Energy ◽  
Wind Turbine ◽  
Principal Component ◽  
Well Being ◽  
Key Factors ◽  
Factors Affecting ◽  
Wind Turbine Noise ◽  
Local Residents ◽  
Assessment Results

As a renewable energy source, wind energy harvesting provides a desirable solution to address the environmental concerns associated with energy production to satisfy the increasingly global demand. Over the years, the penetration of wind turbines has experienced a rapid growth, however, the impacts of turbine noise correspondingly become a major concern in wind energy harvesting. Recent studies indicate that the noise emitted by turbine operating could increase the risk of nuisance, which might further affect the well-being of local residents. However, the main factors affecting turbine noise assessment and to what extent they contribute to the assessment are still unclear. In this study, a survey-based approach is developed to identify these major factors and to explore the interactions between the factors and assessment results. Principal component analysis method was adapted to extract key factors; followed by reliability assessment, validity analysis, descriptive assessment, and correlation analysis were conducted to test the robust of the proposed methodology, as well as to examine the interactions between variables. Regression analysis was finally employed to measure the impacts on results contributed by the key factors. Findings of this study indicate that key factors including physical conditions, control capacity, and subjective opinions are of significant impact on residents’ response to wind turbine noise, while the factor of subjective opinions contributes predominately to the assessment results. Further validations also indicate that the proposed approach is robust and can be extensively applied in survey-based assessments for other fields.

scholarly journals Loan Waivers and Bank Credit: Reflections on the Evidence and the Way Forward

2019 ◽  
Vol 44 (4) ◽  
pp. 198-210
Author(s):  
Sudha Narayanan ◽  
Nirupam Mehrotra
Keyword(s):  
Financial Distress ◽  
Large Scale ◽  
Banking Sector ◽  
Banking System ◽  
Well Being ◽  
Policy Instrument ◽  
Negative Consequences ◽  
Executive Summary ◽  
Long Run ◽  
Macroeconomic Implications

Executive Summary In the past decade, farm loan waivers have become a policy instrument to alleviate the financial distress of farmers. Despite agreement on the theoretical rationale for such debt forgiveness and its deep contextual relevance, many fear that in the long run, loan waivers might vitiate the repayment culture in the farm sector and undermine the financial status of banks. At present, critiques of large-scale loan waivers rest on limited evidence. This article reviews and synthesizes existing research and available data on the implications of loan waivers, especially for the flow of credit to farmers from banks. On most of the issues, such as farmer well-being and repayment culture, there seems to be mixed evidence on the consequences of debt waivers. Credible evidence on macroeconomic implications is limited, mainly on account of methodological challenges. This article concludes that even if loan waivers are an inappropriate strategy to support farm incomes in sustainable ways, the wide-ranging negative impacts on the formal banking sector are perhaps overstated. A more fruitful approach would be to focus on whether loan waivers can be designed to reduce the possible negative consequences for the formal banking system as well as for macroeconomic system. The article identifies three possible instruments—loan insurance products that will help banks cope with the consequences of large-scale defaults. Second, to explore the creation of a distress fund that will cushion state finances, should there be a need for debt waivers. Third, it would be useful to consider the operation of debt relief commissions to have an ongoing process for debt waivers.

scholarly journals THE MECHANISM OF BANK INTEREST RATE FORMATION AT THE MACROECONOMIC LEVEL AND ITS ECONOMIC AND MATHEMATICAL MODEL

2019 ◽  
Vol 2019 (2) ◽  
pp. 73-89
Author(s):  
Dmitry OLIEINIK ◽  
Keyword(s):  
Interest Rate ◽  
Banking System ◽  
Profit Maximization ◽  
Point Of View ◽  
Factors Affecting ◽  
Economic Agents ◽  
Bank Rate ◽  
Financial Condition ◽  
Real Market ◽  
The Interest Rate

It is shown that, as of today, the issue “interest rate and factors affecting it” is described in sufficient detail in terms of identifying and classifying these factors. However, both classical and modern theories consider the interest rate from the point of view of relations between economic agents: the owner of the funds (creditor) and the entity experiencing the need for additional funds (borrower) without singling out the banks. The bank interest is considered exclusively at the microeconomic level as the fundamental rate, adjusted depending on the conditions for granting a loan or attracting a deposit and the financial condition of a bank. However, the issue of the fundamental rate – the rate formed at the macroeconomic level – remains unresolved. Taking decision to set the interest rate, banks pursue two goals: profit maximization and risk management. The author substantiates the idea that the risk factors and effective use of funds raised are crucial for the formation of the fundamental rate. It is shown that the basic factor of the bank interest formation, which combines the elements of risk and profitability, is bank liquidity. At the same time, under the influence of the laws of the behavioral economy, the linear influence of liquidity is transformed into an ellipsoidal one. It is analyzed that subjective factors (the Central Bank rate and its profitability) are the efficiency factors, and their effect on the interest rate is manifested in the context of comparison with the influence of the base factor only. It is substantiated that, in a crisis, the main motivational element when making decision on the interest rate is managing the risk of customer funds outflow. The author presents the interest rate model and modeling results for the banking system of Ukraine, which are quite close to the real market indicators.

scholarly journals Constructing a Financial Condition Index for a Small-Open Economy: The Case of Malta

2018 ◽  
Vol 10 (3) ◽  
pp. 89
Author(s):  
Borg Ian ◽  
Micallef Brian
Keyword(s):  
Interest Rates ◽  
Open Economy ◽  
Small Open Economy ◽  
Balance Sheet ◽  
Principal Component ◽  
Condition Index ◽  
Predictive Capacity ◽  
Financial Variables ◽  
Financial Condition ◽  
Financial Conditions

This paper develops a Financial Conditions Index (FCI) for Malta for the period 1996-2017. This index provides a summary measure of financial conditions by combining several financial variables, both domestic and foreign, that influence economic activity. The indicators in the FCI are grouped in four categories: interest rates, bank balance sheet, asset prices and external variables. The weights are derived using Principal Component Analysis (PCA) and cross-checked using simulations from STREAM, the Central Bank of Malta’s macro-econometric model. Financial conditions in Malta were relatively benign in the mid-to-late 90s, followed by a period of tightening in the early 2000s. Financial conditions improved again during the pre-crisis period but deteriorated during the financial crisis and remained tight until 2013. In recent years these have recovered and became broadly neutral by 2017. The proposed FCIs correlate the most with one to three quarters ahead real GDP growth, suggesting potential predictive capacity for short-term forecasting.

scholarly journals The religion of thinness

2011 ◽  
Vol 23 ◽  
pp. 257-285
Author(s):  
Michelle Lelwica
Keyword(s):  
Well Being ◽  
The Body ◽  
Slender Body ◽  
Spiritual Needs ◽  
Cultural Meanings ◽  
Clear Cut ◽  
Sense Of Purpose ◽  
Traditional Religions ◽  
Long Run ◽  
The Us

This paper examines the almost religious-like devotion of especially women in pursuing the goal of a thinner body. The quest for a slender body is analysed as a ‘cultural religion’, which the author calls the ‘Religion of Thinness’. The analysis revolves around four observations. The first is that for many women in the US today, the quest for a slender body serves what has historically been a ‘religious’ function: providing a sense of purpose that orients and gives meaning to their lives, especially in times of suffering and uncertainty. Second, this quest has many features in common with traditional religions, including beliefs, myths, rituals, moral codes, and sacred images—all of which encourage women to find ‘salvation’ (i.e., happiness and well-being) through the pursuit of a ‘better’ (i.e., thinner) body.Third, this secular faith draws so many adherents in large part because it appeals to and addresses what might be referred to as spiritual needs—including the need for a sense of purpose, inspiration, security, virtue, love, and well-being—even though it shortchanges these needs, and, in the long run, fails to deliver the salvation it promises. Fourth, a number of traditional religious ideas, paradigms and motifs tacit­ly inform and support the Religion of Thinness. More specifically, its soteri­ology resurrects and recycles the misogynist, anti-body, other-worldly, and exclusivist aspects of patriarchal religion. Ultimately, the analysis is not only critical of the Religion of Thinness; it also raises suspicions about any clear-cut divisions between ‘religion’, ‘culture’, and ‘the body’. In fact, examining the functions, features, and ideologies embedded in this secular devotion gives us insight into the constitutive role of the body in the production and apprehension of religious and cultural meanings.

scholarly journals Analysis of the development of the foreign exchange market in the Russian Federation

2021 ◽  
pp. 149-161
Author(s):  
Alexander S. Kokin Kokin ◽  
Vladimir A. Odinokov Odinokov ◽  
Valentina N. Shchepetova Shchepetova
Keyword(s):  
Foreign Exchange ◽  
Russian Federation ◽  
Foreign Exchange Market ◽  
Well Being ◽  
Market Development ◽  
Exchange Market ◽  
The Us ◽  
The Russian Federation ◽  
Us Dollar ◽  
Main Factors

The article focuses on the financial foreign exchange market, the development and condition of which determines the financial well-being of most commercial enterprises of the Russian Federation.  The purpose of the research is to give review of the Russian foreign exchange market’ development and situation. The main factors influencing the level of the exchange rate of foreign currencies expressed in national currency are considered. The domestic and international foreign exchange market of Russia for the period 2016-2020 is analyzed. The dynamics of conversion operations, the structure of participants in the domestic foreign exchange market by type of currency. The results of trading on the foreign exchange market, futures and options as a currency instrument, the share of options and futures on the futures market of the Russian Federation, as well as the dynamics of the US dollar against the ruble and exchange trading indicators for the period from 2016 to 2020. The conditions, results and prospects of the development of the financial foreign exchange market of the Russian Federation are discussed in this  article

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